The Budget has proposed that 60% of accumulated PF should be taxed at time of withdrawal, with the clock starting from April 1 this year, and that employers’ contribution above Rs 1.5 lakh a year should not be tax-free.

In fact, segment leaders like Maruti Suzuki, Tata Motors and Hero MotoCorp have reported de-growth of 34.3 per cent, 45 per cent and 20 per cent, respectively giving a clear indication of a prolonged slowdown in the sector.